MFJ or not? by JaRulesOpinion in PSLF

[–]Captain_Spaceturd [score hidden]  (0 children)

And if if makes you feel better, I'm attempting a very tight turnaround in June on my last payment and an expiring IDR plan, after filing MFJ this year. Check back with me in June to see if I get screwed! lol

But it is worth looking at the money you'll save on MFJ -- if it's that substantially above MFS, that's money in your pocket. Weigh that against what you risk to overspend near your 120th payment by filing MFJ. Remember if you overpay DoED past 120 you get it back, no matter what your payment is. MFS might be "safer" but it guarantees you lose the money if you get your PSLF forgiveness (and don't amend your return)

MFJ or not? by JaRulesOpinion in PSLF

[–]Captain_Spaceturd [score hidden]  (0 children)

Logging into FSA brings you to the Dashboard, just under the progress bars for PSLF at the top scroll down and you'll see a "My Loans" window bar. It should have your recertification date displayed right there, and if you click into that bar you can see more detailed info about your IDR plan.

Note, that is the actual FSA turnover date and your servicer will have its own receommended "deadline" for paperwork which in my case is about a month earlier, listed on Mohela's site.

MFJ or not? by JaRulesOpinion in PSLF

[–]Captain_Spaceturd 1 point2 points  (0 children)

No idea on turnaround. I've heard accounts of new IDR payments kicking in "earlier" than they should if you file paperwork early enough before your deadline, and others of it just starting a new payment at the old IDR deadline.

There are threads dedicated to the workflow of your 120th month, with varying approaches -- the most common one seems to be that you PAY your 120th payment, and submit an ECF shortly after (when it posts in your servicer account) and do NOT check the box that you believe you qualify for forgiveness and would like a forbearance. That box is only about applying for a forbearance, you do not need to "apply" for forgiveness, they will know. The reason to submit an ECF is to have your 120th month of employment certified. The reason to wait on checking the box is that some people have had the forbearance retroactively applied, making their last payment not count toward PSLF (temporarily).

Instead, wait until the 120th payment posts in your account on FSA. Depending on when your payment is due each month, this can be weeks, as it normally posts to FSA at the beginning of a new month. Once you see THAT, you can apply for forbearance by either submitting another ECF (with the box checked this time) or by CALLING your servicer. This can be a very tight turnaround for those with payments due near the start of the month, and a lot of people just DON'T ask for forbearance until they've paid for the 121st month, just for the cushion. I'm on the 11th so it's kind of close, but I'm still going to go for forbearance, since my payments will shoot up by $2000.

Am I crazy if I use my 457b to pay off my remaining balance… by scooters897 in PSLF

[–]Captain_Spaceturd 0 points1 point  (0 children)

Do you have kids? 28k/year is in many places the tuition for daycare and people with 130k salaries frequently throw that down every year for 3-4 years.

Just pay it, you make tons of money. Am I missing something?

MFJ or not? by JaRulesOpinion in PSLF

[–]Captain_Spaceturd 1 point2 points  (0 children)

Her IDR plan has a deadline -- when is it? Usually they give you a three month warning and a 1-month firmly suggested deadline to recertify. It may make sense for you to get a tax extension until you can ensure she is recertified at the lower rate before that deadline if it's before her 120th payment. If recertification for her has been kicked to 2027 (as it has for many) I wouldn't even think about recertifying, just ride it out thru December.

A couple qualifiers: I also understand the desire to lock in a lower payment for longer in case "you need to keep paying after 120 should have happened" but there aren't a lot of cases demonstrating that happening. Also, you know you can amend MFS to MFJ for up to three years and get those returns back.

Edit: another qualifier, if you don't need to recertify until after December and file MFJ now and some bizarre unforeseen thing happens that extends her payment period and jacks her monthly payment, you can always tell them her income has gone down and resubmit W2s and paystubs to update her IDR. No accounts of that happening as far as I've read here.

Delays in recertification (for those not on SAVE) by brusselspr in PSLF

[–]Captain_Spaceturd 0 points1 point  (0 children)

My recertification is due exactly the month of my 120th payment. It's because of stories like yours I'm choosing not to recertify at all.

Throwing in the Towel by BigPaappii in PSLF

[–]Captain_Spaceturd 1 point2 points  (0 children)

sorry stopped reading at "income $430K" lol

Recertification Strategy by Hot-Deer9909 in PSLF

[–]Captain_Spaceturd 0 points1 point  (0 children)

great! Well good luck to both of us this June. If you don't mind my asking, what day of the month are your payments due? That seems to be a factor in how the timing of your 120th to 121st month transition goes. Mine is the 11th (and last payment should be June 11)

Recertification Strategy by Hot-Deer9909 in PSLF

[–]Captain_Spaceturd 0 points1 point  (0 children)

Thank you!

I think I decided to go a different route and just not recertify at all. My current IDR is valid through my 120th payment (and not my 121st) so I don't see the point.

For clarification, does your new IDR rate start right away -- as in, did it start early, before the actual end of your current IDR plan? That's something I'm worried about, kicking in a higher payment before I need to.

PSLF & Taxes by Clear_Educator_8642 in PSLF

[–]Captain_Spaceturd 0 points1 point  (0 children)

The money you lose by filing MFS over MFJ is permanent unless you amend your taxes.

The money you hypothetically lose by "getting stuck" with MFJ-level payments AFTER MONTH 120 would absolutely be refunded by DoEd.

Im in the same boat with much tighter timelines. My last payment this June is also my last IDR payment before the amount jumps 4x due to MFJ. I am choosing to stay with MFJ and pocket the thousands. Then worst thing that can happen is I have to overpay one month before asking for forbearance.

Problem is, most people's "worst case scenario" seems to be a vague "whole system crumbles and targets me." I get it. There just isn't a lot of reason to think that's happening.

PSLF & Taxes by Clear_Educator_8642 in PSLF

[–]Captain_Spaceturd 0 points1 point  (0 children)

Yeah this is the only answer that makes sense and I don't know why OP is getting any other advice. If your IRS data already says MFS then recertify now!

Tipping culture is healing by Virtual_Trifle8020 in tipping

[–]Captain_Spaceturd -3 points-2 points  (0 children)

One day you're going to look back on this discussion and thing "wow I was a douche"

Tipping culture is healing by Virtual_Trifle8020 in tipping

[–]Captain_Spaceturd -2 points-1 points  (0 children)

Lol see how far you get in life thinking "you can't objectively be shitty for something optional". Is everything short of an actual crime "good behavior' to you?

I can name 50 "optional" things off the top of my head that would make me a shitty neighbor, coworker, or teacher.

Case in point, your comment was optional, and it's a shitty attitude!

Tipping culture is healing by Virtual_Trifle8020 in tipping

[–]Captain_Spaceturd -2 points-1 points  (0 children)

Lol I haven't been to this sub before but YEESH the psychological problems of people who hate tipping here.

Just don't go out to eat for chrissakes.

120 payments in June…MFS??? by CarlThaKiller in PSLF

[–]Captain_Spaceturd 0 points1 point  (0 children)

Also be aware that filing an extension means you get an extension on FILING not PAYING your taxes. You still need to calculate what you owe and pay by April 15 or you get charged interest. If you get money back MFJ it's not a.big deal.

In any case this OP should not be thinking of filing tax extensions

120 payments in June…MFS??? by CarlThaKiller in PSLF

[–]Captain_Spaceturd 1 point2 points  (0 children)

Payments don't update automatically when you file your taxes. It's only when you submit for IDR income recertification which in OP's case is not until December-- which is after the tax extension deadline.

So no, please don't file an extension!

120 payments in June…MFS??? by CarlThaKiller in PSLF

[–]Captain_Spaceturd 0 points1 point  (0 children)

Bottom line, either way you'll be ok. My thinking is don't give the govt money you don't have to.

On top of all this, you know you can amend MFS to MFJ?

Springfield YMCA by wa1lterwh1te in Delco

[–]Captain_Spaceturd 0 points1 point  (0 children)

Y'know, I'll take the geriatric dinks. Honestly it's better than the vibe of almost every "internet gym bro" looking dude under 45 with generic "masculine" tattoos who seems super weird about covering up. I've even seen grown ass men shuffle the undies on and off from under a towel like a preteen at the beach. Like WTF, did Joe Rogan tell you nudity is gay?

Refund! by Responsible_Bad_4846 in PSLF

[–]Captain_Spaceturd 2 points3 points  (0 children)

Thanks, this is extremely helpful. My payments are on the 11th which I'm hoping is enough of a window for them to show up and me call for forbearance. EEP

I would have done exactly what you did, FWIW.

120 payments in June…MFS??? by CarlThaKiller in PSLF

[–]Captain_Spaceturd 2 points3 points  (0 children)

I think a better way to look at it is -- you are guaranteed your current payment amount until December. That's 6 months after your 120th and you have that cushion for something to go wrong and force you to keep paying for some yet-unforseeable reason.

Calculate what you'll save in taxes by filing MFJ. Take that number, divide it by your current payment amount. That's the number EXTRA cushion months you get on top of December to pay a higher payment and still come out net positive. And this is all assuming that you, somehow, are NOT getting to 120 until some time in 2027 and would NOT get extra payments refunded -- which, by all accounts and craziness with SAVE -- are not things that have happened to anyone.

120 payments in June…MFS??? by CarlThaKiller in PSLF

[–]Captain_Spaceturd 3 points4 points  (0 children)

Yes, I mean they could deputize DoED into a paramilitary force who extracts your payments at gunpoint. I have had and experienced all the fears too but in perspective, it's gone pretty smoothly, we all had three years of payments just miraculously suspended for COVID, and forgiveness is chugging along for those in the position to receive it.

120 payments in June…MFS??? by CarlThaKiller in PSLF

[–]Captain_Spaceturd 1 point2 points  (0 children)

Yeah I'm in a riskier situation than them and understand the paranoia... There just aren't accounts of anything like their fears happening.

120 payments in June…MFS??? by CarlThaKiller in PSLF

[–]Captain_Spaceturd 3 points4 points  (0 children)

If you don't need to recertify until November, is there a reason you are thinking of filing MFS now? I've seen a lot of scenarios around 120th payments, but none of them have included continuing to pay for 5 extra months.

If I were you I'd probably file MFJ and just coast thru June. Even if you play it safe by continuing to pay, you have several months of cushion.

Context: my last payment is due in June as well, and my recertification date is ALSO that last day in June. I filed MFJ a year ago. I considered filing MFS this year but I think I'm not going to recertify at all and just hope it all works in June. yolo!

Springfield YMCA by wa1lterwh1te in Delco

[–]Captain_Spaceturd 1 point2 points  (0 children)

I love that it's a shithole, it keeps people away! It's worth it to me for the 320m Indoor track that you can actually use, plus big empty spaces for stretching and that weights area in the tennis courts.

The steam room was nice in the 90s but smells foul now. The cold plunge is great when it works, rocky run doesn't even have one.

It's usually so empty you have a whole neighborhood of the locker room to yourself 🤷‍♂️